Discount Factoring is the wave of the future in terms of Small Business Financing. Not that is was simple before, but no longer can a small business owner go into his local bank and get a Small Business Loan without having a strong history to back up the requirements of the banks.
To make it even worse, if you have tax arrears or other problems with the IRS or CRA, the banks will not even talk with you. With all that has been happening in our economy over the last couple of years, what is the Small Business owner to do?
This is exactly what happened with a company in New Mexico who needed Discount Factoring to cover their payroll and tax arrears. The company had been struggling with Receivables Collections but now they are using Discount Factoring to bridge the gap in Collection times.
As I am sure you understand that once the IRS gets involved, things become very complicated and slow things down.
To satisfy the government, a proposal must be done to the agency you are dealing with along with a plan to pay off the arrears as well as keep current with future payments. Discount Factoring is very similar to what the Auto Industry is doing for their bailout financing where the government is covering many of the debts of the automakers to the Auto Suppliers in Detroit.
Who will handle the proposal process? This is where you definitely need to be dealing with a Professional Commercial Finance Broker. They will know the ins and outs of how to do the proposal to get it done. They can negotiate with the IRS on your behalf and can put all the documentation together and submit it with your consent.
You do not need to have the government after you to get into a Cashflow crunch. This can happen for a multitude of reasons from customers extending their payment terms, increased sales growth forcing you to use up all available cash to complete orders for shipping and any other reason you can think of. Be sure to speak to a Professional Commercial Finance Broker about Discount Factoring regardless of your need and they will know the ins and outs of the many different programs available today. And best of all, most are paid by the lender so you will not normally have out of pocket costs for their service.
Wade Henderson - very Professional - 15 yrs in the Business Finance Field - reputation for getting the deal done. IMMFinancial.com Working Capital Management Comercial Finance Broker
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